The 15th Five-Year Plan (2026-2030) positions Intelligent, Green, and Integrated Development as the strategic direction for upgrading China's industrial system and shaping new growth drivers.
At the core is a commitment to maintaining a stable share of manufacturing and building a modern industrial system underpinned by advanced manufacturing - reflecting a shift from broad reform initiatives toward targeted structural upgrading across the industrial economy.
The three pillars carry clear policy implications:
- Intelligent development aims to elevate China's position in global value chains by accelerating the application of digital and intelligent technologies in manufacturing and services, driving a shift toward innovation-led, higher-value production.
- Green development addresses the legacy of extensive, resource-intensive growth by restructuring the energy and industrial system around low-carbon, efficient use of resources and stronger ecological protection.
- Integrated development seeks to align industrial upgrading with the broader trajectory of the new round of technological revolution, improving factor allocation and coordination among industries, technologies and key stakeholders to build a modernized industrial system.
These priorities are already shaping investment logic.
Traditional industries are no longer supported for scale expansion, but for upgrading - through high-end product innovation, energy efficiency retrofits, circular economy solutions, and equipment renewal.
Emerging industries are encouraged to focus on strategic materials, core components, and platform-level technologies. Across both segments, alignment with national objectives - not legacy market size - will define policy relevance.
Chemicals and Power Demand Driven by Key Sectors
Source: Compiled by GL Consulting
To support this realignment, fiscal revenue is shifting from land-driven to innovation-driven sources, such as equity investment. Public spending is being reallocated toward tech R&D, social welfare, and foundational public services, laying the groundwork for a long-term consumption-led growth model beyond the 16th FYP.
Policy signals are also reshaping project selection logic. High-emission and outdated-technology projects face increasing compliance pressure, while those aligned with digital-intelligent infrastructure, low-carbon transition, and systemic integration are more likely to gain long-term support.
The full report dives deeper into:
- Term frequency shifts across 14th-15th FYPs in core planning vocabulary
- Ministry-level investment signals for innovation-led infrastructure
- The evolving structure of fiscal transfers and equity-based funding
- Regional pilots under smart-green-integrated planning models
The above content is the major conclusions and highlights extracted from China (Energy Transition) Policy Perspective produced by GL Consulting. Click the hyperlinks for the full text or email glconsulting@mysteel.com.
